If you’re a UK homeowner thinking about switching your mortgage, you’ve probably heard about remortgage deals with no fees. But are they really worth it? Let’s break it down in simple, clear terms so you can make the right choice for your home and your finances.
What is a Remortgage?
A remortgage is when you switch from your current mortgage to a new deal, usually with a new lender, but sometimes with the same one. People often remortgage to get a better interest rate, lower their monthly payments, or release some equity.
But here’s the catch — many remortgage deals come with fees. These can include arrangement fees, booking fees, legal fees, and valuation fees. Altogether, they can add up to hundreds or even thousands of pounds.
Why Look for Remortgage Deals with No Fees?
If you want to save money upfront, no-fee remortgage deals can be very attractive. You won’t have to worry about paying big arrangement or legal fees just to switch your mortgage. This can be especially handy if you don’t have extra savings or if you simply want to avoid extra costs.
Plus, some no-fee deals also come with free legal work or a free property valuation, which can make the switch smoother and less stressful.
Who Offers the Best Remortgage Deals with No Fees?
Several UK lenders regularly offer competitive no-fee remortgage deals. Banks and building societies like Nationwide, HSBC, Santander, and Barclays often have options worth looking at. It’s important to check the following:
- Interest rate — Is it competitive compared to other deals, even those with fees?
- Length of the fixed period — Are you locking in for two, five, or even ten years?
- Flexibility — Does the mortgage allow overpayments or payment holidays?
- Incentives — Are there extras like cashback or free legal services?
Remember, just because a deal has no fees doesn’t automatically make it the best. Sometimes a low-interest deal with a fee can still save you more money over time.
How to Find the Best Deal for You
Here’s a straightforward way to approach it:
Use comparison websites — Sites like MoneySuperMarket, Compare the Market, or uSwitch can help you see what’s out there.
Speak to a mortgage broker — A good broker can explain the options and sometimes access deals not available to the general public.
Check with your current lender — Sometimes they’ll offer a good retention deal to keep you, especially if you’ve been a reliable borrower.
Things to Watch Out For
While no-fee deals sound great, keep an eye on the following:
- Higher interest rates — Some no-fee deals make up for the lack of fees by charging a slightly higher interest rate.
- Early repayment charges — If you plan to pay off the mortgage early or remortgage again soon, check for penalties.
- Small print — Always read the terms carefully. What’s included as “no fees” may differ between lenders.
Finding the best remortgage deals with no fees in the UK can save you a lot of upfront costs and make your mortgage switch hassle-free. But don’t rush — compare the total cost over the deal period, not just the fees. Sometimes, paying a fee can still work out cheaper if the rate is much lower.
Always consider speaking to a mortgage adviser or broker to get personalised advice tailored to your situation. With a bit of research and the right help, you can secure a deal that suits your needs and saves you money.
FAQs
“No fees” usually means the lender covers or waives certain costs like arrangement fees, legal fees, or valuation fees. But keep in mind, you still need to look at the total cost of the mortgage, as some no-fee deals might come with slightly higher interest rates.
Yes, some lenders offer cashback as an extra incentive on no-fee remortgage deals. This is often a small bonus (usually a few hundred pounds) paid to you after completion. It can be a useful perk, but it’s still important to check if the overall mortgage terms are competitive.
Not always. Some lenders may limit no-fee deals to standard residential properties. If you own a buy-to-let property or a non-standard construction home, you might find fewer no-fee options available. It’s worth checking with a broker or lender to see what applies to your specific case.
Generally, yes. Lenders usually reserve their best no-fee deals for borrowers with strong credit histories. If your credit score is lower, you may still find a no-fee option, but the interest rates might not be as competitive. Checking your credit report in advance can help you prepare.
Most no-fee remortgages take four to eight weeks from application to completion, depending on the lender and how straightforward your case is. Since many no-fee deals include free legal work, the process can sometimes be faster because the lender handles most of the paperwork.
You can, but watch out for early repayment charges (ERCs) on your current mortgage. These penalties can reduce or even cancel out the savings you’d get from a no-fee deal. Always calculate the full costs before making a move.
Not directly. The no-fee element mainly affects upfront costs, not the monthly repayments. However, the interest rate on the new deal will determine what you pay each month, so make sure you’re comparing total costs over the deal term, not just focusing on fees.
Yes, many online lenders and challenger banks now provide competitive no-fee remortgage deals. They often have streamlined application processes and quick decisions. Still, it’s wise to compare them with high-street lenders to ensure you’re getting the best offer.
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